TCS Q2FY26 Results: Revenue Soared ~4% QoQ, Declared Interim Dividend of ₹11

On October 10, 2025, the shares of Tata Consultancy Services (TCS) will draw investor's attention as the IT giant released its earnings for the quarter (Q2FY26) and half-year ended September 30, 2025 (1H FY26). TCS share price closed 1.16% higher at 3066.55, after opening at 3035.00 on Oct 9, 2025.

TCS Q2FY26 Earnings Highlights

TCS reported a strong performance in Q2FY26, with revenue reaching ₹65,799 crore, an increase of 3.7% quarter-over-quarter (QoQ) and 0.8% growth in constant currency (CC) terms. International revenue also saw a steady rise of 0.6% QoQ in CC. Growth was broad-based across verticals, with Banking, Financial Services and Insurance (BFSI) growing by 1.1% QoQ CC and Technology & Services Segment (TSS) rising by 1.8% QoQ CC.

Despite sector-specific headwinds, Life Sciences and Healthcare grew by 3.4% QoQ CC, Manufacturing by 1.6%, and Communications, Media & Information Services (CMI) by 0.8%.

Operating margin expanded by 70 basis points QoQ to 25.2%, while net income stood at ₹12,904 crore, an 8.4% year-on-year (YoY) increase. This translated to a net margin of 19.6%. Cash flow from operations remained strong at 110.1% of net income. The quarter also saw a robust Total Contract Value (TCV) of US$10 billion. A dividend of ₹11 per share has been declared, with a record date of October 15, 2025, and payment scheduled for November 4, 2025.

Key Business Highlights During Q2FY26

TCS continued to strengthen its global client relationships through expanded strategic partnerships during the quarter. A notable engagement includes a seven-year, $647 million agreement with Tryg, a leading Scandinavian non-life insurance provider operating across Denmark, Sweden, and Norway. Under this partnership, TCS will support Tryg in simplifying and standardising its operations across all three markets while driving a comprehensive technology transformation aimed at accelerating business growth.

Additionally, ALDI SOUTH has extended its long-standing partnership with TCS to further modernise its IT infrastructure and application landscape across multiple continents. Through this collaboration, TCS will implement its advanced Cloud Operations Solution to enhance automation, bolster cyber resilience, improve service delivery, and reduce operational complexity and costs. This engagement reaffirms TCS’s position as ALDI SOUTH’s trusted technology partner, helping the global retailer evolve into a scalable, adaptive, and future-ready enterprise.

Also Read: GM Breweries Shares Surge Over 15% After Strong Q2 FY26 Results

TCS Q2FY26 Results: Management Take

K Krithivasan, Chief Executive Officer and Managing Director, said “I am pleased with our strong Q2 performance. I would like to thank all our employees for their dedication and excellence. We are on a journey to become the world’s largest AI-led technology services company. Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments including the building of a world-class AI infrastructure business demonstrate our commitment to this transformation.”

Aarthi Subramanian, Executive Director - President and Chief Operating Officer, said “We delivered strong growth momentum led by Data, Cloud and AI powered enterprise transformation. Our customer engagements are focused on rapid value realization to deliver speed, efficiency and growth. TCS' AI Hackathon set a new benchmark – is the largest, most diverse and innovative AI-first culture building initiative. Our new AI and Services Transformation unit will further scale and integrate our efforts.”

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